30 March 2024 : Daily Current Affairs

Topic: GS3 – Indian Economy –

This topic is relevant for both Prelims and Mains as this analysis on GNPA trends provides insights into the effectiveness of regulatory measures and policy interventions aimed at addressing banking sector challenges.

• According to a report, the Gross Non-Performing Assets (GNPA) of the Indian banking system are projected to further improve to up to 2.1 percent by the end of FY25.
• Care Ratings forecasts GNPA to range between 2.5-2.7 percent in FY24, with further improvement expected to 2.1-2.4 percent by FY25.
• However, the report highlights downside risks, including potential weakening in asset quality due to elevated interest rates, regulatory changes, and a tighter liquidity environment.

About:

• As per RBI, an asset becomes non-performing when it ceases to generate income for the bank.
• NPA is usually a loan or advance for which the principal or interest payment remained overdue for a certain period of time.
• In most cases, debt is classified as non-performing, when the loan payments have not been made for a minimum period of 90 days.
• For agriculture, if principle and interest is not paid for 2 cropping seasons, the loan is classified as NPA.
• Types:
• Banks are required to classify NPAs further into the following three categories based on the period for which the asset has remained non-performing and the realizability of the dues:
• Sub-standard Assets: A substandard asset is an asset classified as an NPA for a period less than or equal to 12 months.
• Dobtful Assets: A doubtful asset is an asset that has been non performing for a period exceeding 12 months.
• Gross NPA(GNPA) and Net NPA:
• GNPA: This is the total amount of NPAs without deducting the provisional amount.
• Net NPA: This is the gross NPA minus the provision.
• Provision refers to funds left aside by banks to cover potential losses arising from bad loans or NPAs.
• Provisions to Deal with NPAs in India:
• The Recovery of Debts due to Banks and Financial Institutions Act (RDB Act), 1993: It established Debt Recovery Tribunals (DRTs) and Debts Recovery Appellate Tribunals (DRATs) to quickly adjudicate and recover debts owed to banks and financial institutions.
• The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act), 2002: Empowers banks and financial institutions to take possession and sell secured assets of defaulting borrowers without court intervention.
• The Insolvency and Bankruptcy Code (IBC), 2016: Provides a fast-track corporate insolvency resolution process for stressed assets, including NPAs.
• IBC has helped resolve Rs 3.16 lakh crore of debt stuck in 808 cases, since its inception.

PYQ: Which of the following statements best describes the term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news? (2017)

(a) It is a procedure for considering ecological costs of developmental schemes formulated by the Government.

(b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.

(c) It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.

(d) It is an important provision in ‘The Insolvency and Bankruptcy Code’ recently implemented by the Government.

Ans: (b)

Topic: GS2 – Governance – Important aspects of governance– E-governance – applications, models, successes, limitations and potential;

This topic is relevant for both Prelims and Mains in the context of knowing facts about the GeM portal’s role in government procurement which reflects broader economic policies and reforms aimed at promoting transparency, competitiveness, and ease of doing business.

• The procurement of goods and services through the Government e-Market (GeM) portal has witnessed a significant surge, doubling to over Rs 4 lakh crore in the current fiscal year compared to Rs 2 lakh crore in the previous fiscal.
• GeM CEO PK Singh announced that as of March 28, the procurement of services from GeM has notably increased from Rs 66,000 crore in 2022-23 to Rs 2.05 lakh crore, while goods worth Rs 1.95 lakh crore have been procured.

• GeM is a completely paperless, cashless and system driven e-market place that enables procurement of common use goods and services with minimal human interface, thus, brings in transparency.
• Being an open platform, GeM offers no entry barriers to bonafide suppliers who wish to do business with the Government.
• Seamless processes and online time-bound payment has given confidence to the vendors and reduced their ‘administrative’ cost.

Significance of the GeM Portal:

• The minimum savings on the platform are about 10%, which translates into a savings of over ₹ 30,000 crore worth of public money.
• GeM gives Indian MSMEs a relative advantage over foreign suppliers of products, and promotes the government’s Make in India initiative.

Major Developments on GeM:

• • GeM Outlet Stores: GeM has launched outlet stores for various categories of products such as SARAS, Ajeevika, Tribes India, Startup Runway, Khadi India, India Handloom, India Handicraft, Divyangjan etc.

• • GeM-CII MoU: GeM has signed a memorandum of understanding (MoU) with Confederation of Indian Industry (CII) to establish a GeM-CII Centre of Excellence (CoE), which will provide training, research and advocacy support to GeM.

• GeM, CSC and India Post: The integration of India’s postal system India Post and Common Service Center (CSC) with the GeM is operational across the country.

• • This allows India Post to provide logistics service into the remotest parts of the country to sellers and buyers transacting via GeM.

• Bamboo Market Window:

• • The National Bamboo Mission and GeM have created a dedicated window on the GeM portal for marketing Bamboo Goods.

Topic: GS3 – Environment – Conservation

This topic is relevant for both Prelims and Mains in the context of understanding the challenges faced by conservation efforts in mitigating the impact of infrastructure development on wildlife.

• The Supreme Court’s decision to review its order to bury power lines in the habitat of the Great Indian Bustard (GIB) highlights the challenges in protecting this critically endangered species.
• With less than 150 individuals remaining in the wild, the GIB faces a deadly threat from power lines criss-crossing its last refuge in the Kutch and Thar deserts of western India.

• It is a bustard found on the Indian subcontinent.
• Scientific Name: Ardeotis nigriceps
• It is among the heaviest of the flying birds.
• Distribution: The species has a current viable population of 100- 150 individuals in India and mainly survives in the Thar Desert of Rajasthan that holds about 100 individuals.
• Habitat: It inhabits dry grasslands and scrublands.
• Features:
• It is a large bird with a horizontal body and long, bare legs, giving it an ostrich-like appearance.
• The sexes are roughly the same size, with the largest individuals weighing 15 kg (33 pounds).
• It can easily be distinguished by its black crown on the forehead, contrasting with the pale neck and head.
• The body is brownish, and the wings are marked with black, brown, and grey.
• They breed mostly during the monsoon season, when females lay a single egg on open ground.
• Lifespan: 12-15 years
• These birds are opportunist eaters. Their diet ranges widely depending on the seasonal availability of food. They feed on grass seeds, insects like grasshoppers and beetles, and sometimes even small rodents and reptiles.
• Conservation Status:
• IUCN Red List: Critically Endangered
• Wildlife (Protection)Act, 1972: Schedule 1
• CITES: Appendix 1

PYQ: Which one of the following groups of animals belongs to the category of endangered species? (2012)

(a) Great Indian Bustard, Musk Deer, Red Panda and Asiatic Wild Ass

(b) Kashmir Stag, Cheetal, Blue Bull and Great Indian Bustard

(c) Snow Leopard, Swamp Deer, Rhesus Monkey and Saras (Crane)

(d) Lion-tailed Macaque, Blue Bull, Hanuman Langur and Cheetal

Ans: (a)

Topic: GS2 – International Relations – Bilateral Relations

This topic is relevant for both Prelims and Mains in the context of understanding the dynamics of bilateral relations, conflict resolution mechanisms, and India’s role in global peace efforts.

• In his inaugural visit to India, Ukrainian Foreign Minister Dmytro Kuleba engaged in significant discussions with External Affairs Minister S. Jaishankar, focusing on the ongoing Russia-Ukraine war and India’s potential role in the peace process.
• The talks revolved around India’s participation in the peace summit organized by Switzerland, although the dates and level of involvement remain undisclosed, presenting a challenge for India amid ongoing elections until June 4.

• Tensions between Ukraine and Russia escalated in late 2013 over a landmark political and trade deal with the European Union.

• • After the pro-Russian then-President, Viktor Yanukovych, suspended the talks weeks of protests in Kyiv erupted into violence. Soon, the then pro-Russian President was ousted.

• Russia responded by invading Crimea, which was a part of Ukraine, and annexing it in March 2014.

• • Russia invaded Crimea on the pretext that it was defending its interests and those of Russian-speaking citizens.

• Shortly afterwards, pro-Russian separatists in Ukraine’s Donetsk and Luhansk regions declared their independence from Kyiv (capital of Ukraine).

• • They established their own autonomous state called Donetsk People’s Republic in 2014.

• • Russia, in February 2022, recognised the independence of these two regions.

• Kyiv and Moscow signed a peace deal in Minsk in 2015. It was brokered by France and Germany. But it could not bring peace in the region.
• Later, in February 2022, Russian President Vladimir Putin declared war on Ukraine in a televised address.

• • He said the military action announced by Russia will seek to demilitarize Ukraine and came in response to threats from Ukraine.

Why Russia invaded Ukraine?

• Russia wanted a guarantee Ukraine can never join NATO

• • Russia’s main demand was a commitment from NATO to end its further expansion into former Soviet republics — especially Ukraine.

• Russia wants NATO arms out of Eastern Europe

• • Russia wants NATO to stop deploying its weapons and forces in countries in Central and Eastern Europe that joined the alliance after 1997.

• Russia wants a ban on NATO missiles within striking distance

• • Russia has nervously watched as NATO has demonstrated it can deepen its involvement in Ukraine — providing weapons and training.

• • NATO missiles on Ukrainian soil might pose serious threat to Russia’s security.

• Russia wants autonomy for eastern Ukraine
• Russia says Ukraine must meet its obligations under 2015 agreements.

• • • The peace deal, known as the Minsk agreements, was signed to end the fighting between Ukraine’s army and pro-Russian separatists in eastern Ukraine.

• • The Minsk agreements also provided additional autonomy to the separatist Russian-speaking territories in the Donbas.

PYQ: Consider the following pairs: (2023)

Area of conflict mentioned in news: Country where it is located

1. Donbas: Syria

2. Kachin: Ethiopia

3. Tigray: North Yemen

How many of the above pairs are correctly matched?

(a) Only one

(b) Only two

(c) All three

(d) None

Answer: (d)

Topic: GS2 – Social Justice – Vulnerable sections

From a UPSC perspective, ensuring film accessibility for persons with disabilities aligns with inclusive policies and legal compliance.

● The Rights of Persons with Disabilities Act, 2016, replaced the Persons with Disabilities Act, 1995, to enhance the rights and entitlements of persons with disabilities.

●The Accessible India Campaign (Sugamya Bharat Abhiyan) aims to make public infrastructure and transportation accessible for persons with disabilities.

● The National Action Plan for Skill Development of Persons with Disabilities focuses on skill development and employment opportunities.

● The Sugamya Bharat App provides information on accessible places for persons with disabilities.

●  The National Handicapped Finance and Development Corporation provides loans and financial assistance to persons with disabilities for self-employment.

●  Financial Support:  Schemes like Indira Gandhi National Disability Pension Scheme and Assistance to Disabled Persons for Purchase/Fitting of Aids and Appliances (ADIP) provide financial aid for living expenses and assistive devices.

●   Awareness & Inclusion: Schemes like BADHTE KADAM promote community interaction and raise awareness about disability issues.

●  The Department of Empowerment of Persons with Disabilities offers various schemes and scholarships for education and skill development.

● The Accessible Elections initiative ensures accessible polling booths and facilitates voting for persons with disabilities during elections.

● Various ministries and departments have specific schemes and initiatives catering to the needs of persons with disabilities, promoting their inclusion and empowerment.

Topic: GS3 – Environment – Environmental pollution and degradation

Understanding the water crisis in Kuttanad aids in comprehending environmental challenges and infrastructure development, crucial for UPSC aspirants.

Water crisis in South India:

● Reservoir Levels: As of March, 2024, South Indian reservoirs are at only 43% capacity, compared to 52% last year [The Hindu – 14th March]. This represents a significant drop in stored water.

● City Impact: Major cities like Bengaluru, Hyderabad, and Chennai are all facing water shortages due to low reservoir levels and rising demand [The Hindu].

●  State Variations: The crisis isn’t uniform. Andhra Pradesh has just 22% reservoir storage compared to last year, while Kerala has 35%.

Reasons for Water Crisis in South India:

●Depletion of Groundwater: Excessive extraction for agriculture, industries, and urban consumption has led to groundwater depletion.

● Erratic Rainfall Patterns: Variability in monsoon rains due to climate change results in droughts and reduced water availability.

● Deforestation and Soil Erosion: Loss of forest cover and soil erosion decrease water retention capacity, leading to reduced groundwater recharge.

●Unsustainable Agricultural Practices: Inefficient irrigation methods and excessive water-intensive crops contribute to water scarcity.

●Urbanization and Population Growth: Rapid urbanisation and population growth increase water demand, straining existing resources.

● Pollution: Contamination of water bodies due to industrial discharge, agricultural runoff, and untreated sewage reduces water quality.

Way Forward to Address the Water Crisis:

● Promote Water Conservation: Encourage efficient water use practices in agriculture, industries, and households.

●  Implement Rainwater Harvesting: Mandate rainwater harvesting systems in urban and rural areas to augment water supply.

● Enhance Irrigation Efficiency: Adopt drip irrigation and other water-saving techniques to improve agricultural water use efficiency.

●Recharge Groundwater: Implement measures to enhance groundwater recharge through artificial recharge structures and afforestation.

●  Integrated Water Resource Management: Develop comprehensive water management plans considering surface water, groundwater, and rainwater.

●   Policy Reforms: Enforce stricter regulations on groundwater extraction, pollution control, and sustainable water use.

● Public Awareness and Participation: Educate communities about the importance of water conservation and involve them in water management initiatives.

●Invest in Infrastructure: Develop infrastructure for water storage, treatment, and distribution to ensure equitable access to clean water.

● Research and Innovation: Invest in research and innovation to develop new technologies for efficient water management and conservation.

Addressing the water crisis requires a multi-pronged approach involving policy interventions, community participation, and sustainable practices to ensure water security in South India.

Topic: GS2 – Indian Polity – Governance – E-governance

Understanding GeM’s expansion aids in digital governance, transparency, and efficient public procurement, vital for UPSC aspirants in policy analysis.

●Government e-Marketplace (GeM) is an online platform established by the Government of India to facilitate procurement of goods and services by government departments and agencies.

●GeM aims to promote transparency, efficiency, and cost-effectiveness in public procurement processes.

● It provides a single platform for both buyers (government organizations) and sellers (vendors) to conduct transactions.

●  GeM covers a wide range of products and services, including office supplies, electronics, vehicles, and consultancy services.

● The platform offers features such as catalog management, price comparison, and online bidding to streamline procurement procedures.

●Sellers need to register on GeM and list their products/services to participate in government tenders and auctions.

●  GeM ensures compliance with government regulations and promotes fair competition among vendors.

●  It reduces paperwork and manual processes, leading to faster procurement cycles and lower administrative costs.

●GeM also facilitates direct payments to vendors, enhancing transparency and accountability in financial transactions.

●  Overall, GeM plays a crucial role in modernizing government procurement practices and promoting digital governance in India.